Using AI to Spot Stocks Before the Herd: A Step-by-Step Guide

In modern markets, speed and data access decide winners and losers. The best funds already use AI and alternative data to find trades hours—or even days—before the rest of the market catches on.

The good news: retail investors can now tap into similar tools. Platforms like AltIndex take dozens of disparate data sources—fundamentals, technicals, sentiment signals—and fuse them into actionable rankings and alerts.

Here’s how to integrate it into your investing flow so you’re making faster, more data-informed decisions.

We’re covering how to:

  • Spot high-potential stocks instantly

  • Leverage Reddit data for market timing

  • Use smart alerts for your watchlist

  • Screen stocks for hidden opportunities

Let’s begin.

1. Start with the top-ranked opportunities

The obvious starting point is AltIndex’s Top 10 Stock Picks—the highest-growth-potential stocks according to its AI model. The scores are calculated daily using a blend of:

  • Fundamentals (earnings growth, valuation ratios)

  • Technicals (moving averages, price momentum)

  • Alternative signals (Reddit buzz, social mentions, job postings, insider trades, employee sentiment, business outlook, and more)

How to read the scores:

Low 60s = soft “buy” signal
High 60s–low 70s = medium “buy”
High 70s = strong interest; worth deeper research
80s = extremely rare—historically the highest conviction scores

So, if you’re interested in a stock, or see someone talking about a ticker as an investment proposition, you can check AltIndex’s rating to see if it agrees or disagrees with that sentiment. To be clear, we’re not saying AI models should be trusted above humans or that their picks are always right—the point is that AI-based data and ratings like these can add an additional layer of due diligence to your investment flow.

Here are AltIndex’s current top 10 stocks, so you can see for yourself:

Sometimes you’re not looking for the best stock overall—you want the best in a category. AltIndex lets you filter scores by industry so you can go straight to leaders in:

2. Use Reddit buzz as a sentiment-gauging tool

Reddit, and especially r/WallStreetBets (WSB), has shown it can move billions in market cap. But the value isn’t in the noise—it’s in spotting changes in conversation volume and tone.

AltIndex tracks:

  • The most-mentioned stocks (both sitewide and in WSB specifically)

  • Day-over-day change in mentions (who’s heating up or cooling off)

  • Summaries of what people are actually saying

For example, here are the top-mentioned stocks on r/WallStreetBets today:


But that’s just one part of the Reddit data that AltIndex provides. One of the highest-value pieces of data it offers is summaries of Reddit user sentiment on stocks.

To illustrate, before CoreWeave dropped 20% earlier this week, this Reddit Alert was sent out to AltIndex users:

And as $CAVA began its 22% nosedive after a poor earning’s report, another Reddit Alert went out:

Meanwhile, when sentiment around UnitedHealth began to turn around, a $UNH alert went out too:

No, these Reddit alerts aren’t predicting the future, and no, Reddit users are not always right in their sentiment and predictions. But this kind of sentiment analytics technology can give you a clear picture of how retail investors are feeling about a stock—and retail investors can have a surprising impact on the market.

We use these alerts with caution, of course, but we do pay attention to them—there’s almost always something worth seeing in AltIndex’s Reddit notifications.

3. Automate your awareness with watchlist alerts

Speaking of notifications, it’s a high-value play to create an AltIndex portfolio or watchlist and set notifications to go off for your stocks so you can see whenever anything big happens—and when sentiment turns for the better or worse.

  • Build a watchlist of stocks you own or are tracking

  • Set alerts for sentiment shifts, AI score changes, or specific data triggers

  • Get notified without having to constantly monitor charts

This keeps you ahead of both sudden downside risk and short-term upside opportunities.

4. Mine the Stock Screener for unique, high-alpha signals

AltIndex’s Stock Screener lets you combine industry filters with specific data metrics, so you can analyze and vet out your hunches.

Examples of Stock Screener settings you could search by:

By connecting operational signals to market pricing, you can spot catalysts before they’re fully priced in.

Bottom line

AI won’t replace your research and personal decision making, but it can surface opportunities, trends, and sentiment shifts you’d never catch on your own. Think of it as adding a hedge fund-style analyst team to your personal investing toolkit—without the hedge fund overhead.

That’s all for today’s special edition. We hope you got value from it—reply and let us know if you did. 

Until next week,

— Brandon & Blake

The information provided in Stocks & Income is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. Stocks & Income is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.

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